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Key to Owning Master Limited Partnerships Is Selectivity

August 10, 2016

Master Limited Partnerships have traditionally been a way to invest in oil in a way that was not tightly tied to volatile oil prices. After all, pipelines are needed to deliver oil no matter what the price of crude.

However, in the oil price rout, correlations between MLPs and oil prices went higher as investors feared bankrupt oil companies could not pay for these delivery networks.